Market Prospects for Groundnut in West Africa CFC Technical Paper No. 39B RNtareauthorFWaliyarauthorMRamouchauthorEMastersauthorJNdjeungaauthorGroundnut production, marketing and trade are major sources of employment, income and foreign exchange in many West African countries. Groundnut products are of central economic importance to millions of smallholders in this region. It generates 60% of the rural cash income and accounts for about 70% of the rural labor force in Senegal and Gambia. However, groundnut trade remains heavily distorted, and this has affected the competitive position of various players in world markets. Previous investments by CFC and ICRISAT in groundnut research and development have concentrated on providing technology options to increase yields and tolerance to abiotic and biotic stresses. While this has been highly successful in developing good varieties, attention needs to be devoted to factors of market demand. There is now clear evidence that incentives or opportunities for market surplus production provide the necessary pull for adoption of new varieties. This shift in paradigm for technology development and dissemination requires the identification of partners and market linkages beyond the common belief that markets are easily available if production is done well. The results of this study are meant to facilitate this process. A range of factors explains the limited competitiveness of groundnut in the domestic, regional and international markets. These include low production and strict rules on grades and standards, which most West African producers often find difficult to meet. Domestic policies have also limited trade. This study has provided background information on groundnut production in West Africa, constraints to groundnut production, processing and commercialization. Additionally, the study also presents some market prospects for groundnut and groundnut products, and explores ways to increase groundnut competitiveness in the domestic, regional and international markets. It is our hope and expectation that this report will be valuable in the promotion of groundnut production and trade not only in West Africa but also in all sub-Saharan Africa countries where the economies are still agriculturedependentGroundnut2005International Crops Research Institute for the Semi-Arid TropicsMonograph